Blue Ocean Strategy

strategy concept

01 Definition

Blue Ocean Strategy meaning: A strategy of creating uncontested market space instead of competing in crowded markets.

Blue Ocean Strategy, from a book by Kim and Mauborgne, argues that companies win by creating new demand in uncontested space rather than fighting rivals in a crowded red ocean. It stresses making the competition irrelevant through value innovation. Finding such space is difficult and not guaranteed to succeed.

Also called

blue ocean

Why it matters

How Blue Ocean Strategy fits the work

The idea matters because competing on the same terms as everyone else can shrink margins, while opening new space can reduce direct rivalry for a time.

In context

A circus reinvented itself for adult audiences without animals, creating a blue ocean between traditional circus and theater rather than competing head on.

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Practical note

Blue oceans do not stay empty. Successful new spaces attract imitators, so treat any uncontested position as temporary and plan for eventual competition.